Classify each statement below as true r false by dragging it into the correspond

Question

Classify each statement below as true r false by dragging it into the corresponding box. When two countries choose to partake in international trade, it is a mutually beneficial activity for both countries. Wealthier countries always benefit more from international trade than poorer countries. Countries trade for goods in which they do not have a comparative advantage, and therefore, would never trade with nations that have similar resources endowments. Through specialization and trade it is possible for a country to consume a combination of goods that is beyond its original production possibilities frontier.

Explanation / Answer

When two countries choose to partake in international trade, it is a mutually beneficial activity for both countries.-- True

Countries trade for goods in which they do not have a comparative advantage, and therefore, would never trade with nations that have similar resource endowments.-- False

Wealthier countries always benefit more from international trade than poorer countries.-- False

Through specialization and trade, it is possible for a country to consume a combination of goods that is beyond its original production possibilities frontier.-- True

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